Government Strengthens Anti-Money Laundering Measures
Sentosa Cove Properties Under Prohibition of Disposal Orders
The government has taken a significant step to combat money laundering in the real estate sector by placing all Sentosa Cove properties under prohibition of disposal orders. According to Minister Indranee Rajah, this move is part of the government’s efforts to strengthen due diligence requirements and ensure that property agents, agencies, and developers adhere to rules.
Regular Inspections and Consequences
The Council for Estate Agencies and Urban Redevelopment Authority conduct regular inspections to identify higher-risk properties and subject them to more frequent checks. Failure to carry out due diligence measures can result in:
- Fines of up to S$100,000 for developers and property agents
- Fines of up to S$200,000 for property agencies
- Revocation or suspension of licenses or registrations
Additional Measures
To combat money laundering, the government has also introduced additional measures, including:
- The Accounting and Corporate Regulatory Authority screens all officers and shareholders of companies
- Companies must appoint at least one director residing in Singapore to be held accountable for any breaches
- Non-resident foreigners setting up companies in Singapore must either appoint a resident business partner as a director or appoint a nominee director
- Registered filing agents must verify customer identities and file reports if due diligence checks fail
Strengthened Anti-Money Laundering Rules for Single Family Offices
The Monetary Authority of Singapore (MAS) has announced plans to strengthen anti-money laundering rules for single family offices, requiring them to maintain a business relationship with an MAS-regulated financial institution. This move comes after ongoing investigations suggested that one or more accused persons in the S$2.8 billion money laundering case may have been linked to single-family offices awarded tax incentives.
Customer Due Diligence Rules
Customer due diligence rules are in place to prevent money laundering involving precious products, such as jewellery and watches. Dealers must perform checks before conducting transactions exceeding S$20,000 or if they suspect money laundering is involved. Since 2021, 96 enforcement actions have been taken against dealers for failure to comply with these requirements.
Foreigners and Immigration
The authorities scrutinize applications for work passes and immigration facilities, step up checks on high-risk individuals, and use data analytics to identify and assess higher-risk applications. Applicants are also screened against a database of blacklisted individuals. Foreigners convicted of an offence in Singapore may be deported or banned permanently.
However, Minister Teo warned that no screening process is foolproof and the public should not make “knee jerk reactions” that could make Singapore’s business environment unfriendly to foreigners.